USU Software AG — Earnings Release 2002

May 31, 2002

News Details

Ad-hoc | 31 May 2002 20:06

USU-Openshop AG english

USU-Openshop AG: 3-month figures 2002 and outlook. Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Möglingen/Stuttgart, May 31, 2002: The reporting period of USU-Openshop AG covers the first quarter of 2002, comprising the three months from January 1, 2002, to March 31, 2002. During this period the consolidation of USU AG took place on March 11, 2002. In order to secure the comparability of the data for the first quarter of 2002 with that of the following periods, additional pro forma data on the statement of earnings will be provided which represent a pro forma consolidation of USU AG as at January 1, 2002. In the first quarter of 2002, in a continued difficult economic environment, USU-Openshop achieved sales of EUR 1.9 million (PY: EUR 1.6 million) for the whole Group. This includes the consolidated sales of USU AG as of March 11, 2002. Taking the sales of USU AG from January 1, 2002, into account, USU- Openshop would have achieved pro forma sales to the value of EUR 6.3 million in the first quarter of 2002. As a result of the implemented restructuring and economy measures, USU-Openshop improved earnings before interest, taxes, depreciation and amortization (EBITDA) to EUR -2.9 million (pro forma: EUR -4.7 million) as against EUR -4.4 million in the previous year. The net loss for the first three months was EUR -2.5 million (PY: EUR -3,8 million) or EUR -0.22 per share (PY: EUR -0.40 per share). The pro forma net loss was EUR -7.8 million. In the second quarter of 2002 the necessary personnel and portfolio adjustments and the amalgamation and closure of branches will result in additional restructuring expenditure of approximately EUR 3 million. Beside the closure of the Hanover branch and a site in Munich, it was necessary to release approximately 50 employees in connection with the concentration on core company competences. Thus the essential measures were implemented for providing a healthy basis to pursue market consolidation. Moreover, with a secured liquidity base of over EUR 68 million, USU-Openshop has clear growth potential for acquisitions, which should be targeted with great precision. The Management Board Contact: USU-Openshop AG, Falk Sorge, Tel. 07141-4867-351, ir@usu-openshop.com end of ad-hoc-announcement (c)DGAP 31.05.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: The reporting period of USU-Openshop AG covers the first quarter of 2002, comprising the three months from January 1, 2002, to March 31, 2002. During this period the consolidation of USU AG took place on March 11, 2002. In order to secure the comparability of the data for the first quarter of 2002 with that of the following periods, additional pro forma data on the statement of earnings will be provided which represent a pro forma consolidation of USU AG as at January 1, 2002. In the first quarter of 2002, in a continued difficult economic environment, USU-Openshop achieved sales of EUR 1.9 million (PY: EUR 1.6 million) for the whole Group. This includes the consolidated sales of USU AG as of March 11, 2002. Taking the sales of USU AG from January 1, 2002, into account, USU- Openshop would have achieved pro forma sales to the value of EUR 6.3 million in the first quarter of 2002. Due to the negative economic conditions and accompanying reductions or postponements of IT budgets, USU-Openshop was impacted by significant investment restraint on the part of USU-Openshop customers, especially in the high-margin license business. Consultancy and other services such as maintenance partially compensated for this decline in sales. However, the shift of sales from licenses to the consultancy business had a direct result on income. Despite this sales- related negative impact on the Group result, USU-Openshop was able to improve the earnings from ordinary operations due to implemented restructuring and economy measures. In the reporting period it improved to EUR -3.3 million from EUR -4.8 million in the previous year. While marketing and distribution together with administration costs were substantially reduced to EUR 1.6 million, (PY: EUR 2.9 million), and EUR 0.3 million (PY: EUR 0.8 million), respectively, research and development costs showed a slight increase from EUR 1.7 million in the previous year’s quarter to EUR 1.9 million in the first quarter of 2002. Here, account should be taken of the simultaneous expansion of research and development activities in the divisions Knowledge Management and IT-Controlling due to the integration of USU AG into USU-Openshop AG. Earnings before interest, taxes, depreciation and amortization (EBITDA) accordingly totalled EUR -2.9 million (PY: EUR -4.4 million, pro forma: EUR -4.7 million). With the inclusion of depreciation of goodwill as well as tangible and intangible assets, earnings before interest and taxes (EBIT) amounted to EUR -3.2 million (PY: EUR -4.7 million, pro forma EUR -6.3 million). Including interest income and expenditure, earnings before taxes (EBT) were EUR -2.5 million (PY: EUR -3.8 million, pro forma: EUR -5.5 million). Taking account of taxes on income and minorities, the net loss was EUR -2.5 million (PY: EUR -3.8 million) or EUR -0.22 per share (PY: EUR -0.40 per share). Pro forma, there would have been a net loss of EUR -7.8 million. Due to the merger with USU AG the balance sheet total on March 31, 2002, increased against that of December 31, 2001, from EUR 69.7 million to EUR 125.3 million. On the assets side, goodwill to the value of EUR 34.7 million resulted from the consolidation of USU AG. Moreover, trade receivables rose from EUR 1.7 million to EUR 7.8 million. On the liabilities side, the merger with USU and the capital increase in this context were reflected in the increase of shareholders’ equity from EUR 60.8 million on December 31, 2001, to EUR 109.0 million on March 31, 2002. At the same time the equity ratio at 87.0% remained virtually constant in comparison with 87.2% at the end of the financial year. On March 31, 2002, total liquid funds and capital investments amounted to EUR 68.3 million (December 31, 2001: EUR 60.9 million). USU-Openshop AG will continue to be influenced by the overall difficult economic situation in the second quarter of 2002. In the short term, the Management Board therefore anticipates a modest development of sales and earnings. The license business, in particular, will strongly impact the earnings development in the following quarters. This experienced a sharp downturn due to general economic developments, with the consequent reduction and postponement of orders. Here, with an economic upswing the Management Board expects a clear improvement in the order situation. On the other hand, positive impulses are already coming from the Consulting division. The necessary personnel and portfolio adjustments and the amalgamation and closure of branches will result in additional restructuring expenditure of approximately EUR 3 million in the second quarter of 2002. Beside the closure of the Hanover branch and a site in Munich, it was necessary to release approximately 50 employees in connection with the concentration on core company competences. Thus the essential measures were implemented for providing a healthy basis to pursue market consolidation. In the medium term, the leading economic researchers predict significant improvement of the economic situation. Under this premise, the Management Board of USU-Openshop AG expects a significant improvement in business development from the fourth quarter of 2002. Moreover, with a secured liquidity base of over EUR 68 million, USU-Openshop has clear growth potential for acquisitions, which should be targeted with great precision. The Management Board Contact: USU-Openshop AG, Falk Sorge, Tel. 07141-4867-351, ir@usu-openshop.com ——————————————————————————– WKN: 780470; ISIN: DE0007804700; Index: Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover, München und Stuttgart 312006 Mai 02